Tourism Industry

1.0 Abstract

As we all know, the tourism service is a smokeless industry, with fast and instant development all over the world. Tourism service, as a form of industry, is able to bring a lot of benefits and interests to a local and national government.

First of all, tourism service brings good impact on the economic and cultural development of an area. Additionally, tourism service enables the people from one country get to know more and more about the rest world outside their country. Thus there is no evidence denying the fact that tourism service contributes a great deal to the harmonization and mutual understanding among the people all over the world.

2.0 Introduction

The aim of this report is to give a specific analysis of the marketing of the tourism service. It is going to analyze macro environmental factors concerned with the tourism industry, on the other hand, from the micro perspective, it will also analyze micro environmental factors relating to this industry. In addition, with the SWOT analysis, this report will discuss the five most important environmental factors which may affect the tourism service. However, due to a lack of marketing and promotion, the tourism industry has failed to diversify into areas beyond wildlife, such as culture and beach tourism (Derek, Wade, Mwasaga and Paul, 2001). It is still worth drawing public attention to this fact.

3.0 Specific analysis

3.1 Analysis of macro environmental factors

Nowadays, as is known to all, China is developing with a very rapid speed, with a considerable amount of contribution from tourism industry. Therefore it is interesting to pay attention on analyzing the macro environmental factors that affect the marketing of the tourism service in China. It can be said that the tourism industry is impacted by the economy, the social trends, as well as the political environment in China.

3.1.1 The economy

Since the November 1978, China's economy began reforming and opening up. Up to now China has sustained rapid economic development for the last 30 years, which has drawn the much attention from the rest of world. Due to its fast economic growth, China has become the world's third largest economies.

China now holds more than one trillion U.S. dollars of foreign exchange reserves, and has become the first largest trading nation and destination of foreign direct investment. As the fast-developing economy in China, the tourism industry is gained more and more opportunities to be developed, for example, the infrastructure of the tourism industry, and with the adequate economic support, the marketing of tourism service is able to be launched.

3.1.2 Social trends

Because of the increasing income of the Chinese people, now the Chinese people’s demand for more leisure and mental entertainment is rising up. Although China’s tourism industry only began to develop these years, China has great potential for its future development in terms of tourism service with its rich tourism resources and good geographic conditions. With the fast development of information and technology service, the marketing of tourism service will gradually take more advantage of the social media.

The practical applications of the new information technologies and its systems will be driven by the very tsunami of the growth of the tourism industry, by its needs to connect with travelers and travelers to connect with destinations. Their futures are very much linked.

3.1.3 Political environment

Tourism service, as an emerging industry of the national economy, China has clearly set up its basic principles of the development and construction at the early stage. On the one hand, China adheres to the policy of reforming and opening up, and attracts funds from home and abroad continuously. On the other hand, China makes full use of its social resources, and encourages the government, enterprises and individuals to invest in tourism projects. So this open investment policy promotes the Chinese tourism investment market to be more active, and improve their tourist reception capacity, which has created great conditions for the prosperity and development of the tourism service.

3.2 Analysis of micro environmental factors

3.2.1 The targeted customers

The start of the second wave of China’s outbound tourism will change the Chinese tourists as we know them today. The “New Chinese Tourists”, is knowledgeable, sophisticated, technology-savvy and predominantly below 45 years of age. New Chinese tourists offer an increased chance for destinations and tourism service providers - off the beaten track - to get a piece of the Chinese outbound market. Many travel brands are trying to capture the attention of this very valuable new customer segments.

3.2.2 The competitors

The competitors of the tourism service of course are the existing tourism companies, and the existing tourism agencies, internal and external, and also the potential competitors who may enter into the tourism service industry. Now, the marketing strategies of the tourism companies are much like the same, so the competition in tourism industry is becoming more and more fierce and cutting-throat. Therefore, finding out the effective and different marketing and promotion can push tourism service to become more diversified and attracting.

3.2.3 The consumer behaviors

Just over a third of international travelers use their smart phones to access mobile social networks. This leads to tourists posting content on their Facebook pages or Blogs, or posting their photographs on Twitter or Flickr, whilst they are still at that destination. What a tremendous on the spot marketing and promotional opportunity for these destinations and tourism companies.

An increasing number of frequent traveling Chinese visitors are more likely to travel independently, and not be happy with being part of a large group, meaning that they have a greater choice to choose when and where they travel and the destinations they choose since they have the financial resources to choose and not have to worry about the costs or the price of the tickets.

They have the opportunity to explore unusual and ‘off the beaten track’ places and can look for holidays and activities that suit their personal interests and tastes. Therefore, we can know that the current tourists like to use social media when they are enjoying the tourism service, which will be a great opportunity for the tourism service industry to make a good marketing.

Chinese tourists are at the forefront of hi tech and digital trends and are greatly increasing their use of computers and mobile phones to research and
purchase things as exemplified by the large use of Tao Bao, Alibaba and Ebay that are driving this consumerism.

3.2.4 An internal analysis with a focus on capacity to market.

The rise of Food Tourism and Wine Tourism, Adventure Tourism has gotten the attention of a lot of travel, tourism, and hotel companies. The big U.S. hotel chains such as Starwood, Hilton, Marriott, and Inter-Continental Hotels have all announced programs designed specifically for Chinese tourists. And how do they market these places, on line of course.

These also include adding popular Chinese dishes to full-service restaurant menus (including a traditional Chinese breakfast), featuring one or more Chinese television stations in the guestrooms, and introducing guestroom amenities such as slippers, tea kettles, and a selection of Chinese teas. Some hotels have also brought on a front desk concierge who speaks fluent Mandarin. And again how do they market all these new amenities, on line of course.

In general, many travel, tourism, and hotel companies are marketing their products, service by virtue of social media. As a result, Chinese tourists are increasingly being influenced by digital and social media marketing. Ninety percent of respondents, as concluded by a 2011 Forbes survey, which was comprised of more than 300 China-based senior executives, said that digital and mobile marketing are a critical part of the mix for reaching Chinese tourists, especially the younger and the more affluent tourists.

4.0 Conclusion

Marketing’s job is to get customers and prospects meaningfully engaged with the brand and on the road to sales. with Facebook, Twitter, Weibo, QQ and other social media growing and leading the world in online conversations, how can travel, tourism, and hotel companies and destinations not see the impact that social media have on their promotion and marketing. Destination marketing is increasingly becoming extremely competitive worldwide.

Destinations need to differentiate their products and develop partnerships between the public and private sector locally in order to co-ordinate delivery. Taking advantage of new technologies and the Internet also enables destinations to enhance their competitiveness by increasing their visibility, reducing costs and enhancing local co-operation (Dimitrios 1999). What is more, there are positive relations of the population towards tourism, and the tourism industry can make full use of the geostrategic position. Besides, large potential of thermal waters, untouched nature, and the cultural and historical monuments will do well to the further development of tourism service (Bojovic and Plavsa 2011).